It was the first post-General Election QES and as usual, the results make for interesting reading!
Survey findings suggest a slowing down of both domestic and overseas sales. There was growth in the number of companies reporting expansion of workforce over the last 3 months but a drop in the number of businesses who expect their workforce to grow in the coming months.
When it comes to investment, QES reported a drop in the number of businesses investing in plant, machinery and capital during Q3. This ties in with anecdotal evidence we’re hearing on the ground, about businesses holding back on investment and preferring to ‘wait and see’ what is announced in the Chancellor’s Budget later this month. The indicators appear to suggest that business confidence is on hold until at least 30.10.24. It’s a picture which is replicated by the national QES results.
In other areas of the QES, taxation is now the most commonly cited concern. This has overtaken interest rates and inflation, with results suggesting a “tax anxiety” for many business owners. Breaking this down further, manufacturers and smaller small to medium sized enterprises (SME), are more likely to have concerns about tax. SME operating in the services sector (e.g. hospitality), are still more concerned about inflation. Responses suggest that expectations of price increases are starting to level off, with labour costs regarded as the main cost pressure for business.
Within each QES, we also have capacity to add one-off questions about specific topics. Our latest QES asked businesses for feedback on Artificial Intelligence (AI), something which is becoming increasingly relevant for many business sectors. Almost half of respondents (44.4%) suggested that they expect to increase their use/adoption of AI in the next year.
We also asked about future requirement for staff to be fluent in an overseas language. Only 6.35% of respondents suggested that this is relevant, with French and German scoring as the most popular languages.
With business confidence seemingly on hold, all eyes will be watching the Chancellor of the Exchequer’s maiden Budget speech on Wednesday 30th October. We’ll be writing to Rachel Reeves with a number of key Budget ‘asks’ but once the Budget has been delivered, you’ll have the chance to have a more detailed guide to what any announcements will mean for you and your business. Join us for our Post Budget Breakfast on the morning of Thursday 31st October, kindly hosted by RSM. You’ll get expert analysis and a summary of the key tax measures from the Budget and how any changes may impact your investment strategies and succession planning.
Join us for what promises to be a fascinating and informative update. Click here to book your place:
